Why is FMCG Salesman struggling with logistic departments every day?



What is logistics in simple word?

Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the field.

What is logistics and example?


Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a timely, cost-effective manner.


What challenges do you face in the distribution and delivery of consumer goods? 

Is it growing consumer needs or increasing shipping costs?

Or is it poor delivery management?


All of these circumstances must be there Pushing your business to make tough decisions.

The problem may seem complicated, but it is not impossible to solve. To solve the problem, we recommend using a delivery management system, which can potentially improve your distribution process and reduce the risk associated with costs.

As a fleet manager, you have a lot of responsibilities. The most important task is to optimize operating costs (as low as possible). Others include vehicle acquisition, fuel costs, vehicle maintenance, insurance, driver training, and
compliance with regulatory vehicle obligations.

However, the best delivery management system can simplify your day-to-day delivery operations and reduce the stress of ever-increasing costs.


How can companies manage the delivery of consumer staples?

There are two amazing ways delivery can be managed.

 Assign the best routes and right-sized transportation to the delivery team.

It is important to choose the right vehicle based on the nature and volume of the delivery. For example, choosing a fuel-efficient mid-size truck for FMCG delivery is a great option.

Pro Tip: Try to ignore visits from a day-haul transport Therefore, decisions can do more for your cost and make a big dent in your wallet in less time.

 Use an online delivery management system that allows you to track each delivery with one click.

Pro Tip: Start with one minimal feature tracking software system to which you can add features according to your needs. Owners only need to pay a small monthly fee (more than an investment) to use the services without worrying about significant costs.

Importance and Benefits of a Delivery Management System for the FMCG industry

With a focus on the consumer goods industry, we will discuss how delivery management systems can help automate the delivery of consumer goods.


Improve driver and vehicle safety:

At the heart of the delivery, process is the drivers who are directly involved in the FMCG goods transport process. It is vitally important that you keep an eye on your speed and safety practices.

In addition, speed is an issue for many FMCG companies as the number of traffic accidents due to speeding is increasing.

Befriend a Real-Time Delivery Management System can take on the task of monitoring driver performance and

Provide timely updates on driver activities.


What is the delivery status? How long does delivery of FMCG products take? Is the order complete? Where did the lag occur?

Notifies you of real-time field activity while you’re in your chair.

Also, it allows you to make instant decisions based on current situations when needed. Save hours that could be wasted calling every driver for updates.

Customized reports to increase productivity:

Maintaining accurate data is key to evaluating performance if you are in the FMCG business. This data provides information about –


 How well has your performance been this month/year?

. What were the main disadvantages?

In which areas is there room for improvement?

 What steps should we take to increase the expected ROI?

The delivery management app provides you with easy-to-understand reports on your past deliveries. Use graphs, pie charts, tables, and other means to provide actionable data for decision-making.

Reminders about vehicle maintenance and car service:

The assets you own are of great value. To protect them from environmental degradation, it is necessary to organize a maintenance program. An affordable delivery management system allows you to set maintenance reminders for each vehicle.

You can eliminate guesswork and access accurate delivery dates.

Stay informed about routine vehicle inspections that contribute to an efficient
– Handover process at.


Fleet managers will receive a push notification (email about vehicle repair and service as soon as the service date and time are updated).

It saves a lot of time and eliminates the need for complex data entry in spreadsheets. Fleet managers can access custom reports without spending a lot of time creating reports.

Improving customer satisfaction:

The manager, the important Making fleet decisions can easily focus on increasing
‘s customer satisfaction rate.

How can same-day delivery management systems contribute to customer satisfaction?

Fleet managers can quickly receive upcoming booking reminders and information by logging into the software.

Delivery managers can receive notifications of late deliveries and customer escalations.

And they can even view the status of orders assigned to subordinates as completed or expired.


You can use real-time tracking capabilities to troubleshoot bugs that
customers are concerned about.

Receive appointment confirmation reminders to avoid unwanted delays and counteract the forgetful nature of the human brain.


Efficient route planning for cost-effective delivery:

Being in the FMCG industry, you know how complex it is to decide on a routing plan.


The delivery reservation system helps managers, delivery dates, and routes to plan for the transport to deliver to the end customer efficiently.
In situations such as demand with little anticipation from the customers, the organization of
vehicles and route planning become a challenge.

A fleet management system can automate the task of route planning and save a lot on transportation costs. By transport costs, we mean fuel costs, parking fees, toll fees, cleaning costs, etc.


Mastering the retailer’s last-mile delivery is vital to winning or losing customers.

Deliveries completed within the first attempt not only provide a superior last-mile experience to customers but also help avoid incurring additional costs.


Listed below are all the reasons why the first delivery attempt is critical for retail businesses and how last-mile delivery optimization software can help.

In retail, successful first delivery attempts can reduce costs involved in executing multiple deliveries (for identical orders), storage of packages, and management of delivery personnel.
The follow-on cost for a second delivery is like delivering three packages and amounts to increased costs. That’s why e-commerce and third-party logistics companies must ensure delivery on the first attempt.


A delivery that’s unsuccessful in the first attempt incurs extra costs for rescheduling the delivery, informing the customer, and adding the delivery during a future delivery round at a date that suits all parties.

For the retailer, first attempt failure means:
late final delivery to finished customers, thereby increasing the danger of customer dissatisfaction.
More time is spent on managing the dialogue with the customer.
More miles traveled, meaning more fuel costs.
The need for space for storing
More greenhouse gases are emitted before successful delivery.
Penalties are levied on e-commerce players for not fulfilling terms and conditions.
Profit margins have shrunk. (Increases in second delivery volumes will negatively affect the general profitability of the retail business.)


Improvements in Customer Experience and Retention:
With one-day deliveries becoming the norm, customer experience is the new differentiating factor for retailers, and last-mile deliveries are the critical touchpoint for the identical.

An improved first-attempt delivery success rate may be a win-win for the customer, delivery executive, and therefore the service provider while enhancing the customer experience exponentially.

By improving First Attempt Delivery Rate (FADR) in various aspects, like delivering the package at customer-preferred time windows and providing live ETA via a tracking link, retailers can ensure a pleasant customer experience. A quick last-mile delivery service that delights consumers goes a long way in attracting and retaining customers.

Research also indicates that if deliveries are unsuccessful on the first attempt, or if customers receive an incorrect or late delivery, then over 15% of consumers may give up shopping with a retailer altogether. So, faster delivery services can ensure higher customer retention.


Increases in Customer Loyalty, Engagement, and Spending:
As more and more consumers are shifting to online ordering, they’re increasingly looking for faster and more frequent deliveries. Therefore, last-mile delivery within the first attempt has become a critical service-level expectation and a “must-have” feature, particularly for food and grocery consumers.

Research shows that three-quarters of consumers are willing to spend more if they’re satisfied with the delivery services. While 74% of satisfied consumers plan to increase their purchase levels by 12% with their preferred retailer, 53% are willing to get a paid membership for delivery services.
So, offering faster last-mile delivery services to consumers brings the following benefits to retailers:
Increased customer loyalty
Customer willingness to pay higher delivery charges for quicker delivery
Higher average monthly grocery spending by consumers
Increase in order size: more purchases at a better frequency
Added cross-sell and up-sell opportunities for the retailer. Higher chances to sell exclusive memberships to consumers.

Increases Consumer Endorsements:
Research shows that 82% of satisfied customers share positive delivery experiences with their friends and family. This endorsement helps retailers attract more customers.
An efficient and timely last-mile delivery service can increase free word-of-mouth recommendations for a retailer.


Helps Gain a Competitive Edge
With expectations increasing and consumers gravitating towards faster delivery options, organizations that provide a superior last-mile experience, including first-attempt deliveries, gain a competitive edge over their peers.

So, if retailers can potentially achieve all of the above benefits, then why not get the order delivery right on the first attempt?

First-attempt delivery success isn’t as easy as it sounds! Last-mile delivery comes with unique challenges, such as:

adverse traffic jam

Incorrect or impossible-to-find addresses incorrectly transcribed access codes or telephone numbers
Imitations of vehicle capacity
driver shortages
limited route knowledge of delivery personnel.
Parking difficulties or strict parking regulations
The customer is not present or unavailable at the time of delivery
unavailability of the proper equipment to unload the order at the point of delivery.
How Can Last-Mile Delivery Optimization Software Help?

By automating the entire delivery process, end-to-end last-mile delivery optimization software can help increase the success rate of first delivery attempts.


Automated order processing and tracking
Dispatch planning and backend automation for delivery
dynamic automated routing to intelligently plan routes for delivery.
Mapping any delivery package to the customer using only the time of delivery and the location
Automated vehicle allocation and utilization
Automated asset tracking, alerts, and notifications to both shippers and consumers, thereby improving visibility from end to end and reducing the danger of first delivery attempt failures.
Live tracking link for patrons to know accurate ETAs
Automated inventory and warehouse management
Enabling delivery through autonomous vehicles, drones, and self-service lockers
Enabling customers with automated order management with features like autocomplete and validation of addresses, selection of preferred delivery time windows, rescheduling delivery, and canceling orders on the go, etc.


Electronic proof of delivery (EPOD) to finish the entire end-to-end order fulfillment process
Insights and analytics to watch and improve delivery performance

For the above reasons, ensuring successful last-mile deliveries to customers, right on the first attempt, is now more significant than ever for retail.

Unified fleet management and delivery management system can help retail businesses optimize cost, efficiency, productivity, and safety by leveraging location technology and innovation.

So, are you able to implement a real-time last-mile delivery optimization system to ensure successful deliveries to customers on the first attempt?


 Changing Driving Habits

Although your drivers should be well trained, there are times when a driver will develop bad habits, such as driving. B. Road imperfections. It is these habits that can lead to increased fuel costs due to repairs if the vehicle is not driven carefully and carefully.

It will be a viable option if fleet managers regularly drive driver training courses that explain how the
Speed, braking, and handling can contribute to driving efficiency. It can help save costs and improve security.

 Reduce fleet size and weight

Fleet managers should actively seek to reduce vehicle size. To do this, they must invest their time in understanding the functionality of the vehicles they manage.

They must spend time in the field, a task that many fleet operators fail to achieve. do. With a thorough understanding of business needs, you can reduce vehicle models and engines accordingly and include appropriate
options while avoiding failures such as mechanical failures and downtime.

 Servicing Windshields

Windshields are an important part of a vehicle; Without them, your fleet cannot run smoothly on the road. When your vehicle’s windshields are damaged, you are putting your drivers’ lives at risk. You might think you could save money by avoiding windshields, but cracks and chips can get worse the more often the driver drives the vehicle.

If you repair windshields promptly your vehicle and you’ll be back on the road in no time.

Plus, you can avoid a costly replacement if it gets worse.


 Take care of your tires

Like the windshield, a vehicle’s tires play a crucial role in managing a fleet’s fuel costs. Worn tires are not only a threat, but they can also affect a vehicle’s fuel efficiency.

Take care of your vehicle’s tires, and regularly check the air pressure and tread depth.

Be sure to replace any old tires that look worn and detrimental to driving the vehicle.

Investing a little in tire maintenance can make a huge difference and Save repair costs.

 Choose the right fleet

As a fleet manager, you have too many options when choosing a company car fleet. However, by choosing the right fleet size for the job, you can keep costs to a minimum.

If your team needs a small car for a task and you choose a big truck, the job will get done, but more fuel will be used than needed. This low cost could hurt you in the long run.


Use telematics

At first, the expense of telematics to monitor your fleet might seem confusing, but in the long run, data can help you in many ways. Ways. With real-time communication coupled with a routing app in your vehicle, you can increase the efficiency of your fleet.

In addition, using telematics can improve your vehicle’s safety, reduce operating costs, and optimize your vehicle’s performance.


 Keep your fleet updated

It’s easy to be happy when your fleet is stable and running smoothly. As a thought leader, you must keep your edge by upgrading your fleet in good time.

All vehicles have a defined lifetime to be as fuel efficient as possible. Considering your use of these vehicles, you should upgrade your vehicle fleet before the older vehicles cost more fuel and repair.


If it helps you in the future and your employees are satisfied with the best vehicles for their tasks.

 Keep emissions down

Reducing emissions is not only good for the environment but also for your wallet. By following fuel-efficient vehicle guidelines, you can reduce the taxes you pay.

The more CO2 your vehicle emits, the more money you have to spend on taxes, so vehicle emissions reduce your overall fleet management costs.

The larger your fleet, the greater your savings.

 Capitalize your fleet properly


As a fleet manager, you can always save money by financing your fleet. With the financing method, you do this on a contractual or permanent basis depending on your usage methods.

Fleet financing can help you improve your cash flow, flexibility and increase management support and reduce the impact on your financial results

 Check travel frequency

It can be difficult to know how much your employees travel when they have been doing it for years. But it would be better if you deal with unnecessary travel to reduce additional costs and possibly the number of vehicles in your fleet.

Sometimes it is important to deal with your Meeting clients or face-to-face meetings – face to face with the client, but if a meeting could be scheduled by phone,
video conference, or email, significant savings could result. Your small investment in technology can save you a lot of fuel and energy.


Starting a fleet Business can be challenging at first, but maintaining fleet costs can be a bigger challenge to keep the business running smoothly. You need to use an efficient Fleet Management System that takes care of all aspects of your fleet business


As is now well known, last-mile logistics is the most expensive part of the order fulfillment process.

Because e-commerce is a highly competitive, low-margin business, almost everyone has products, available in numerous markets, companies are constantly experimenting with new ways to reduce costs and gain an edge over their competitors.

fmcgs new channels for sale Top-7-ecomm-India

In such a scenario, order fulfillment has become a crucial tool to achieve a create competitive advantage. Providers and logistics and distribution companies are constantly striving to deliver consumer packages faster and cheaper while still offering their consumers as many choices as possible.

While economies of scale affect the supply chain and distribution business like any other industry, as higher volumes increase profitability, the challenge lies particularly in last-mile logistics.

Delivering each package to individual customer addresses is a difficult task. Not surprisingly, last-mile accounts account for more than 50% of the total cost of delivery.


All e-commerce businesses will answer in unison when asked what their “biggest challenge” is: keeping up with the delivery demands of today’s customers!

For example, when even an e-commerce giant like Amazon has struggled with its delivery for years, they know the problem runs deep and needs serious consideration.

So if you’re an e-commerce business looking to study best practices for great last-mile delivery, here’s a comprehensive look at how Amazon does it.

Amazon’s internal logistics: A look at its history


 Same Day Delivery (2009): Back in 2009, at a time when today Express delivery was then unknown in the world, Amazon introduced it under the name Local Express Delivery!

In its early days, availability was limited as it was only restricted to US metro areas

Between 2009 and 2013, their logistics gradually improved every year. There were also takeovers such as KEVA robotics in 2012.

 Operation Dragon Boat (2013): They brought their internal logistics and last-mile expertise to the world through Operation Dragon Boat. That same year, the company announced that it was working on Amazon Prime Air, a fleet of 30 drones focused on last-mile delivery.

But it’s stuck in aviation and regulatory guidelines, unable to operate effectively.


 Upping the ante (2014): Amazon needed to improve its last-mile delivery capabilities to keep up with its expansion and acquired a 25 percent stake in Colis Prive and Yodel, two transportation companies. (In 2016, Amazon fully acquired Colis Prive, further flexing its fast-growing last-mile muscle.)

 Amazon Prime Now (2015): 2015 saw the launch of the now ubiquitous Amazon Prime Now, a key part of Operation Dragon Boat. Opened 58 delivery centers across the US to achieve efficient and cost-effective last-mile delivery that consistently delivers “1-2 hour delivery”.


Amazon Flex: Following the unprecedented success of Amazon Prime Now, the company decided to enter the on-demand market.

Since its infrastructure is already in place (unlike its competitors Postmates and Uber), Amazon introduced Flex, an on-demand delivery service to ship products directly from Amazon warehouses to customers. This engages all drivers in the sharing economy, a movement that favors order fulfillment.

 Amazon Logistics (2018): To reduce its shipping and handling costs (which totaled a whopping $27 billion and $34 billion respectively in 2018), Amazon Logistics was formally launched


 Free One- and Two-Day Shipping (2019): With in-house logistics operations now reaching their true potential, Amazon has introduced its (now famous!) Free One-Day Shipping. This move turned out to be a major turning point as demand for one and two-day deliveries skyrocketed by over 90% in the same year!

Amazon Robotics Program (2020): The Amazon Robotics program was launched as a service/collaboration for delivery innovators and startups to develop cutting-edge, technology-driven last-mile delivery solutions by collaborating with Amazon. 


 Some key Amazon initiatives for the last mile:

DSP (Delivery Services Partner Program): Through this partnership program, Amazon joins up-and-coming logistics startups.

The partner invests approximately $10,000 in building a delivery team while Amazon fills the need, e.g. H. Parcels delivered from his company’s warehouses to customers’ addresses. Within the US, Amazon has already partnered with over 2,000 external delivery partners.

Amazon Prime Air: Jeff Bezos has been pushing the use of drones as a convenient option for parcel delivery since 2013!

Prime Air is attempting to do just that after receiving approval from the FAA (Federal Aviation Administration) to test this technology.

The company assures that the use of drones is also ecological since they are electric and use clean energy. Its goal is to make all its shipments zero-carbon and it commits to achieving 50% of that by
by 2030.


 Amazon Scout: An all-electric robot designed to deliver packages directly to customers’ doorsteps. This facility is currently only available in Snohomish County, Washington, and has received great support from the community.

Amazon has addressed the issues of last-mile delivery. Amazon isn’t slowing down anytime soon, whether it’s reinventing what’s possible by continually deploying new technology or keeping a laser-sharp emphasis on driving down costs.

This e-commerce titan is intent on controlling the last-mile delivery ecosystem. If you’re seeking answers for your company, you should look at how Amazon went about assessing and developing its in-house logistics solutions.

You will also find that innovative technology tools such as automated, and current last-mile delivery software are incorporated throughout all such effective logistics systems of today.

What is logistics in a job?What is the purpose of logistics?


Peak volumes for the duration of the vacation season regularly spike dramatically, achieving 10 to twenty instances of their ordinary size. The complexities of the delivery chain, the crunch withinside the ability, and the want for well-timed delivery upload super strain on shippers for the duration of the festive celebrations.

That is why Logistics Managers want to attention to making plans and getting prepared early for the vacation peak duration. Advanced practice for the last-mile delivery control for the time of vacations enables shippers to take in any growth in logistics expenses because of a contingency and offers them an aggressive advantage.


Listed underneath are 12 pointers for logistics managers to put together for the vacation delivery peak.

Planning is the important thing to navigating thru the peak period for all logistics providers. It takes year-spherical planning to ensure the crew is satisfactorily organized for the peak season. By making plans beforehand to control purchaser delivery expectancies, logistics managers can save you surprising frustrations.

Planning for Increased Manpower Needs:
Logistics managers want to devise their staffing wishes early. They want to determine the wide variety of shifts they could require to run for the duration of the peak excursion season and the wide variety of transient people they could want to hire. They additionally want to consider an incentive plan and bonuses for employees to hold them glad for the duration of the elevated seasonal workload.


Setting Order Deadlines Ahead of Time:
Logistics Managers need to plan to deliver order time limits an afternoon or in advance than the pageant day to lessen last-minute pressure and set extra practical delivery expectancies of clients.

Logistics managers want to make certain that correct verbal exchange is disseminated in any respect degrees and thru the complete delivery chain. They want to make certain that everybody is aligned with the elevated degree of pastime that calls for an elevated commitment.


Effective Inventory Handling:
Based on their gathered information and logo strategy, logistics managers must exactly forecast the call for every object for the duration of the vacation season and hold their stock degrees accordingly. Otherwise, they could discover themselves surrounded by a pile of unsold goods, main to troubles of opposite logistics. Inventory forecasts need to be aligned with advertising and income techniques for the vacation season.

Effective Supply Chain Management:
Well-constructed delivery chains are vital to make certain on-time delivery of orders for the duration of the vacation peak. The managers can flip to third-birthday birthday celebration logistics providers (3PLs) to assist fulfill their purchaser call.

Offering Alternative Delivery Options:
The capacity to pick a trade delivery choice is vital to online shoppers. Flexible delivery options, consisting of getting entry to factors provide handy options for domestic delivery and make certain purchaser pride at some point of the method. This opportunity permits busy online clients to pick delivery and returns places that might be handy to them.


Domestic Delivery Capacity:
Logistics managers want to evaluate and plan their home delivery action ability to deal with big volumes withinside the excursion season. It is likewise vital that they construct sturdy members of the family with their delivery providers to offer extra wearing ability whilst the area will become tight for the duration of festive instances.

Situational Awareness on the Floor:
Awareness of the ground state of affairs withinside the Distribution Center or your very own warehouse is a have to for logistics managers for the duration of the busy excursion peak. But studies show that many logistics managers spend a minimum of 60 in line with cent in their time in the back of their desks. Spending extra time far from the desk, searching out at the ground, and seeing a damaged method, manufacturing lag, or an overall performance problem with their very own eyes can assist logistics managers to get an extraordinary perspective.

Planning for Exceptions:
Logistics managers need to remember to designate a place for coping with exceptions, consisting of applications that exceed the extent and weight limits of coping with equipment, gadgets requiring unique coping, and orders that can’t be completed. Handling unique instances of their very own distinctive location can hold the normal object deliveries transferring unexpectedly thru the vacation rush.


Planning for Contingencies:
Logistics managers want to make contingency plans for outages of two to six hours or extra. They need to be capable of circulating orders to different centers for fulfillment in case of outages. They want to determine which orders and what number of orders may be transferred to different centers.

Use of Efficient Logistics Technology:
During the peak season, a few centers see orders leap multi-fold, however taking a long term to fulfill the call for and supply the product is unacceptable. So, in case your logistics device isn’t prepared for growth, you’ll face commercial enterprise problems.

That is why logistics managers want to streamline the logistics method with the usage of the right logistics technology, consisting of a delivery control device (TMS).

TMS enables storing, circulating, and directing the waft of products internal a logistics facility to control the vacation- rush in a higher manner than guide labor. TMS needs to combine with the warehouse control device or the organization’s useful resource-making plans (ERP) device. TMS needs to have gear that permits car monitoring and giving notifications of the delivery fame alongside the manner.


The delivery hassle area entails a fixed of warehouse places, delivery places, and numerous delivery vehicles. Planning for the vacation delivery peak at the same time as that specializing in excellent practices for excursion logistics execution will make sure much less purchaser dissatisfaction and reduced logistics expenses.

Efficient routing and delivery optimization software programs can offer excellent answers to logistic companies. Are you prepared to put into effect efficient routing and last-mile delivery optimization software programs to devise your routes fast and efficiently?


How does poor inventory management affect schedules in logistics?

Poor Inventory Management
Poor inventory management is among the top reasons why small businesses fail. Managing inventory is essentially a balancing act between having too little or too much. How much inventory is “just right” is often a moving target. This is because demand for different SKUs can change throughout the year because of seasonality or over the course of several years because of changing trends in demand.

The effects of too little inventory


Missed Sales

This happens when you cannot immediately fulfill an order because of a stock-out of the ordered item. Not keeping track of inventory levels can lead to stock out of popular items during a sudden surge in demand. This can happen due to peak season or other external factors. Having sufficient stock is crucial. A business that has a reputation for running out of stock frequently will struggle to reach its full potential. These common inventory management challenges can be solved by utilising Enterprise Resource Planning software that can improve the understanding of customer demand, sales forecast, and supply chain lead times. Having an inventory tracking system streamlines and automates the process of replenishing fast-moving items.


Lost Customers

Customers rarely look back after they find a company that can promptly fulfill their orders at a competitive price. They will continue to give the company their business until they have a reason to do otherwise. If these customers were turned away because of a stock-out problem in your inventory, you have lost their repeat business. Every one of these lost customers is a lost source of recurring profit for your company. As with the previous point, having a stock-out and losing many customers during a peak buying season will have a long-term impact on your business.


What is the role of logistics in the e-commerce world?


Challenges facing e-commerce logistics 

While logistics proves to be incredibly beneficial to e-commerce players, it suffers various challenges. Your customers will still expect the product storing and shipping processes to be smooth whether your business is facing e-commerce logistics problems. 

It’s a good idea to protect your trusted customers and stay relevant in your niche of business as these challenges arise. The problems your online store may face with regards to e-commerce logistics include:

 Resources for same-day delivery

As e-commerce giants such as Amazon are facilitating same-day deliveries, other e-commerce sites (both small and large-scale) want to follow suit. Same-day deliveries are convenient for online retailers if they have the resources to facilitate faster logistics and fulfillment. 

Your business may want to stay competitive by shipping goods to customers on the same day they’re ordered. It may get frustrating if you don’t have the resources to make the service a reality

 Identity theft

Consumers are increasingly relying on online shopping sites to provide them with a wide range of services and products because of the convenience they enjoy. Identity theft, as one of the e-commerce challenges, is making it difficult for consumers to enjoy the convenience that online shopping brings. 

It may be saddening to your business if your customers’ credit card information is stolen when they’re trying to purchase an item from your site. The customer will be forced to leave the cart unattended because they can no longer transact with your business. 

Cases of identity theft on e-commerce sites also hurt the logistical process in the long run since consumers experience difficulties purchasing an order and fail to enjoy order fulfillment. 


 Free shipping costs

Online retailers are increasingly offering consumers free shipping service as a way to encourage them to shop more items. 

What most people don’t know is that it actually costs a retailer to facilitate such a service. If your business is working with a third-party logistics provider, you’ll have to shoulder the costs yourself as you offer free shipping. 

Some businesses incur losses after implementing the free shipping incentive since they didn’t factor in the shipping costs in the product prices. 

 Unreliable logistics providers

While third-party logistics providers are expected to be diligent in their line of work, there are some who make it difficult for online retailers to effectively ship products to customers or have inventories stored. 

Your customers will get impatient with you when a product takes longer than the estimated shipping time. They wouldn’t want to know that the logistics provider has caused the delay. 

In the end, working with an unreliable logistics provider may translate to product delivery delays, which will make your customers lose trust in your business. 


 Technical errors caused by inventory management or shipment tracking software

Advances in e-commerce logistics are making it easier for online retailers to keep tabs on stored inventory or goods that are shipped to customers. Not all solutions designed to make logistics convenient are effective. 

The software you’re using to track goods may crush or experience technical errors. Before getting it fixed, you’ll have temporarily lost information regarding the status of products being shipped to your customers. If it takes longer for this issue to be solved, your business will definitely have some damage control to do. 


How to address e-commerce logistics problems

Growing an e-commerce business to the point of having a large customer base and constant flow of revenue is a big deal. Your goal is to now ensure that all operations are afloat and that the online store doesn’t incur losses. 

E-commerce logistics may take a toll on your company’s financial resources if not done properly. If you’re planning to take the logistical aspect of your e-commerce business to a higher level, here are some of the things to consider:


It’s important to maintain the vision as the logistical demands of your online store grow. Most e-commerce platforms that experience a sudden growth consider expanding their logistical capacity to cope with the increase in new products or orders. 

If your business grows, expand your operations to use several drop shippers and warehouses. 

As you expand to cope up with the growth, ensure that items are still visible when shoppers proceed to the checkout state. Have enough stock at hand to keep up with these demands. 

It’s advisable to partner with third-party logistics providers and ask them to help you develop the operational discipline and systems required for inventory management. 


Demand planning

Successful online retailers make inventory predictions based on historical data. With this data and a few techniques, it’s easy for them to determine the amount of inventory needed by their stores. 

Some of the ways to implement demand planning include social sharing and site traffic monitoring. Monitor seasonal trends such as holiday and weather-driven purchases to determine the types of products consumers are likely to buy. 

It also a good idea to invest in free shipping and offer discounts codes and use them to measure the demands for your products.

 Last mile delivery

According to a study by the University of Delaware, last mile services form up to 28 percent of the aggregate shipping costs. Last mile typically revolves around the final delivery step to a consumer. 

Your online store may facilitate last mile via services such as FedEx or UPS. If you’re running a B2B store, you can use an LTL carrier to facilitate the service. 

The delivery experience helps consumers rate your company. Ensure that your last-mile strategy is sustainable enough to satisfy the expectations of your customers and balance the resource and cost requirements. 

Free shipping incentives

Online shoppers have a higher preference for unconditional free shipping when it comes to making purchasing decisions. Amazon’s over 100 million Prime subscribers are loyal to the company because of the free shipping incentive. 

Integrating free shipping into your services may prove profitable in the long run. Negotiate with your shipper on how you can facilitate free shipping to drive more revenue to your business. 

You can even employ marketing tactics that allow shoppers to enjoy free shipping on selected products or orders with minimum sizes. 


 Decentralized warehousing

With this strategy, you’ll be moving products close to your customers to reduce shipping costs and delivery times. Use it to minimize last mile and ensure that customers derive satisfaction from your order fulfillment services. 

You may turn retail stores into shipping centers to facilitate this service. 

 Managing returns

While it’s quite challenging to manage the returns of your business, it’s advisable to separate them from the forward moving supply chain of products you’re expecting. When handled properly, returns may take the form of reverse purchases. 

Online retailers can achieve returns of 24 to 36 percent, according to Transport Tropics. You need to set up various mechanisms to achieve these numbers. 

You may delegate the management of returns to your staff or set up mini-warehouse locations to offer low-cost spaces for the job. 


 Managing 3PL relationships

Third-party logistics relationships come handy to e-commerce shippers looking to outsource all or part of their logistical functions to other businesses. Working with a 3PL helps you handle all fulfillment aspects, store/track inventory, and manage inbound shipments. 


Using a 3PL helps your online business focus on other critical operations while ensuring that your shipping and order fulfillment services are effectively handled. 

Understanding how logistics works is crucial for every e-commerce business

The e-commerce logistics business continued to grow with the rise in the popularity of delivery companies and e-shops. It also continues to face more challenges, which requires online retailers to speed up their logistics performance. 

Where does your business stand in all of this?

Understanding the challenges facing the e-commerce logistics sector and how to solve them is crucial if you want to succeed in the e-commerce world. It’d also help if you incorporate some of the strategies discussed here into ensuring that the logistical processes of your online business run smoothly.


Key Differences Between Logistics and Supply Chain Management

Logistics is a very old term, firstly used in the military, for the maintenance, storage and transportation of army persons and goods. Nowadays, this term is used in many spheres, not specifically in the military after the evolution of the concept of Supply Chain Management. It has also been said that SCM is an addition over Logistics Management as well as SCM comprises of logistics. Both are inseparable. Hence they do not contradict but supplement each other. SCM helps Logistics to be in touch with the transportation, storage and distribution team.

The following are the major differences between logistics and supply chain management:

The flow and storage of goods inside and outside the firm are known as Logistics. The movement and integration of supply chain activities are known as Supply Chain Management.

The main aim of Logistics is full customer satisfaction. Conversely, the main aim behind Supply Chain Management is to gain a substantial competitive advantage.


Normally there is one organisation involved in Logistics while some organisations are involved in Supply Chain Management.

Supply Chain Management is a new concept as compared to Logistics.

Logistics is only an activity of Supply Chain Management.


What are the courses and Jobs available in logistics?

Logistics Manager is high in demand and the number is likely to rise in future as more and more services for supply and distribution are required. More and more new companies which produce products or goods are added every year. Hence the need for Logistics Management is only going to increase.

Logistics Management is an important department in the eye of a company as it directly co-relates to its success. If any company is able to handle Logistics Management perfectly then it will surely score well in consumer satisfaction.

Unlike other fields, this field will always stay evergreen. Moreover, Logistics In Career Management has not got much attention in India. So if you are interested in building your Career In Logistics Management then it is highly recommended that you go for it.

Logistics Manager Salary

The salary of the Logistics Manager depends upon the profile and education qualification of the candidate. Some companies also offer bonuses. Here is the approximate salary of Logistics Manager:

Logistics ManagerSalary (approximate)
Starting Salary per annumRs 2,39,000
Mid Level Salary per annumRs 6,19,000
Senior Level Salary per annumRs 20,00,000

Jobs In Logistics Management

It is not necessary that the candidate will be hired as Logistics Manager only. There are some other job roles as well which are under the Logistics Management. These job roles are subcategories of Logistics Management and are more like a part of Logistics Management.

Supply Chain Manager

Warehouse Logistics Manager

Transportation Analyst

Inventory Manager

Procurement Manager

Customer Service Representative

Transport Planner

Retail Planner

Logistics Coordinator


Courses Available For Career in Logistics Management

In India, there are several good universities which offer diploma level to postgraduate courses in this field. The courses which they offer are:

Diploma Courses:

Advanced Diploma in Logistics and Shipping

Advanced Diploma in Logistic Management

Advanced Diploma in Supply Chain Management

Post Graduate Diploma in Logistics and Supply Chain Management

Post Graduate Diploma in Materials and Logistic Management

Bachelor Courses:

Bachelor of Supply Chain Management

Bachelor of Commerce (BCom) in Supply Chain Management

Master Courses:

MBA in Logistics and Supply Chain Management

MBA in Material and Logistic Management

Team DigitalGumma

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